NASDAQ: CSCO
CISCO SYSTEMS, INC.CIK 0000858877 · SIC 3576 · Computer Communications Equipment
Cisco designs and sells a broad range of technologies that help to power, secure, and draw insights from the Internet. We are incorporating artificial intelligence (AI) into our product portfolios across networking, security, collaboration and observability as well as integrating our products more… About this business →
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Cisco reports record Q4 revenue of $17.3B, up 18%, and raises FY2027 guidance on AI demand
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revenue $15.8B, net income $3.37B. Cisco Q3 revenue +12% on AI infrastructure; gross margin falls 200bp on memory costs
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Cisco announces up to $1B restructuring to fund AI, security investments; Q3 FY2026 results filed
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Cisco's Chief Accounting Officer Wong retiring; internal controller Fink promoted
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Cisco appoints Peter Shimer to Board, replaces departing director Daniel Schulman
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Latest financial statements
From 10-Q filed May 19, 2026 (period ending Apr 25, 2026). As printed on the EDGAR/iXBRL face — not generated by the model.
Consolidated Statements of Operations (Unaudited)
(in millions, except per-share amounts)
| Description | Three months ended April 25, 2026 | Three months ended April 26, 2025 | Nine months ended April 25, 2026 | Nine months ended April 26, 2025 |
|---|---|---|---|---|
| REVENUE: | ||||
| Product | 12,117 | 10,374 | 34,836 | 30,722 |
| Services | 3,724 | 3,775 | 11,237 | 11,259 |
| Total revenue | 15,841 | 14,149 | 46,073 | 41,981 |
| COST OF SALES: | ||||
| Product | 4,613 | 3,688 | 12,752 | 10,927 |
| Services | 1,148 | 1,183 | 3,524 | 3,544 |
| Total cost of sales | 5,761 | 4,871 | 16,276 | 14,471 |
| GROSS MARGIN | 10,080 | 9,278 | 29,797 | 27,510 |
| OPERATING EXPENSES: | ||||
| Research and development | 2,377 | 2,335 | 7,132 | 6,920 |
| Sales and marketing | 2,855 | 2,724 | 8,607 | 8,148 |
| General and administrative | 661 | 739 | 2,082 | 2,286 |
| Amortization of purchased intangible assets | 228 | 244 | 690 | 774 |
| Restructuring and other charges | (1) | 34 | 182 | 709 |
| Total operating expenses | 6,120 | 6,076 | 18,693 | 18,837 |
| OPERATING INCOME | 3,960 | 3,202 | 11,104 | 8,673 |
| Interest income | 214 | 250 | 646 | 774 |
| Interest expense | (377) | (403) | (1,097) | (1,225) |
| Other income (loss), net | 242 | (102) | 423 | (121) |
| Interest and other income (loss), net | 79 | (255) | (28) | (572) |
| INCOME BEFORE PROVISION FOR INCOME TAXES | 4,039 | 2,947 | 11,076 | 8,101 |
| Provision for income taxes | 666 | 456 | 1,668 | 471 |
| NET INCOME | 3,373 | 2,491 | 9,408 | 7,630 |
| Net income per share: | ||||
| Basic | 0.85 | 0.63 | 2.38 | 1.92 |
| Diluted | 0.85 | 0.62 | 2.36 | 1.91 |
| Shares used in per-share calculation: | ||||
| Basic | 3,952 | 3,972 | 3,954 | 3,981 |
| Diluted | 3,982 | 4,002 | 3,987 | 4,004 |
Consolidated Balance Sheets (Unaudited)
(in millions, except par value)
| Description | April 25, 2026 | July 26, 2025 |
|---|---|---|
| ASSETS | ||
| Current assets: | ||
| Cash and cash equivalents | 7,083 | 8,346 |
| Investments | 9,557 | 7,764 |
| Accounts receivable, net of allowance of $73 at April 25, 2026 and $69 at July 26, 2025 | 6,480 | 6,701 |
| Inventories | 4,708 | 3,164 |
| Financing receivables, net | 2,936 | 3,061 |
| Other current assets | 5,795 | 5,950 |
| Total current assets | 36,559 | 34,986 |
| Property and equipment, net | 2,577 | 2,113 |
| Financing receivables, net | 3,642 | 3,466 |
| Goodwill | 59,292 | 59,136 |
| Purchased intangible assets, net | 7,850 | 9,175 |
| Deferred tax assets | 7,558 | 7,356 |
| Other assets | 8,068 | 6,059 |
| TOTAL ASSETS | 125,546 | 122,291 |
| LIABILITIES AND EQUITY | ||
| Current liabilities: | ||
| Short-term debt | 11,932 | 5,232 |
| Accounts payable | 2,970 | 2,528 |
| Income taxes payable | 173 | 1,857 |
| Accrued compensation | 3,290 | 3,611 |
| Deferred revenue | 16,446 | 16,416 |
| Other current liabilities | 4,730 | 5,420 |
| Total current liabilities | 39,541 | 35,064 |
| Long-term debt | 19,371 | 22,861 |
| Income taxes payable | 2,304 | 2,165 |
| Deferred revenue | 12,153 | 12,363 |
| Other long-term liabilities | 3,316 | 2,995 |
| Total liabilities | 76,685 | 75,448 |
| Commitments and contingencies (Note 14) | ||
| Equity: | ||
| Cisco stockholders’ equity: | ||
| Preferred stock, $0.001 par value: 5 shares authorized; none issued and outstanding | — | — |
| Common stock and additional paid-in capital, $0.001 par value: 20,000 shares authorized; 3,940 and 3,960 shares issued and outstanding at April 25, 2026 and July 26, 2025, respectively | 48,950 | 47,747 |
| Retained earnings | 704 | 50 |
| Accumulated other comprehensive loss | (793) | (954) |
| Total equity | 48,861 | 46,843 |
| TOTAL LIABILITIES AND EQUITY | 125,546 | 122,291 |
Consolidated Statements of Cash Flows (Unaudited)
(in millions)
| Description | Nine months ended April 25, 2026 | Nine months ended April 26, 2025 |
|---|---|---|
| Cash flows from operating activities: | ||
| Net income | 9,408 | 7,630 |
| Adjustments to reconcile net income to net cash provided by operating activities: | ||
| Depreciation, amortization, and other | 1,902 | 2,176 |
| Share-based compensation expense | 2,903 | 2,693 |
| Provision for receivables | 11 | 17 |
| Deferred income taxes | (217) | (792) |
| (Gains) losses on divestitures, investments and other, net | (500) | 52 |
| Change in operating assets and liabilities, net of effects of acquisitions and divestitures: | ||
| Accounts receivable | 187 | 1,406 |
| Inventories | (1,549) | 541 |
| Financing receivables | (34) | 505 |
| Other assets | (602) | (516) |
| Accounts payable | 444 | (10) |
| Income taxes, net | (2,342) | (2,002) |
| Accrued compensation | (332) | (431) |
| Deferred revenue | (141) | (524) |
| Other liabilities | (347) | (786) |
| Net cash provided by operating activities | 8,791 | 9,959 |
| Cash flows from investing activities: | ||
| Purchases of investments | (7,367) | (3,066) |
| Proceeds from sales of investments | 1,884 | 2,228 |
| Proceeds from maturities of investments | 3,811 | 3,985 |
| Acquisitions, net of cash and cash equivalents acquired and divestitures | (46) | (291) |
| Purchases of non-marketable equity securities | (699) | (265) |
| Return of investments in non-marketable equity securities | 223 | 108 |
| Acquisition of property and equipment | (1,020) | (688) |
| Other | (6) | (5) |
| Net cash provided by (used in) investing activities | (3,220) | 2,006 |
| Cash flows from financing activities: | ||
| Issuances of common stock | 354 | 320 |
| Repurchases of common stock—repurchase program | (4,605) | (4,748) |
| Shares repurchased for tax withholdings on vesting of restricted stock units | (1,362) | (910) |
| Short-term borrowings, original maturities of 90 days or less, net | 412 | (479) |
| Issuances of debt | 10,640 | 17,388 |
| Repayments of debt | (7,854) | (18,545) |
| Dividends paid | (4,894) | (4,812) |
| Other | (32) | (80) |
| Net cash used in financing activities | (7,341) | (11,866) |
| Effect of foreign currency exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents | (57) | (23) |
| Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents | (1,827) | 76 |
| Cash, cash equivalents, restricted cash and restricted cash equivalents, beginning of period | 8,910 | 8,842 |
| Cash, cash equivalents, restricted cash and restricted cash equivalents, end of period | 7,083 | 8,918 |
| Supplemental cash flow information: | ||
| Cash paid for interest | 1,305 | 1,370 |
| Cash paid for income taxes, net | 4,228 | 3,265 |
Amounts as printed on the EDGAR/iXBRL face — (in millions, except per-share amounts); (in millions, except par value); (in millions). Labels, columns, and figures are the filing face, not a GAAP stencil. Interactive statements & notes on EDGAR ↗
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About CISCO SYSTEMS, INC.
Source: Item 1 (Business) from the 10-K filed September 3, 2025. Description as filed by the company with the SEC.
Item 1.Business
General
Cisco designs and sells a broad range of technologies that help to power, secure, and draw insights from the Internet. We are incorporating artificial intelligence (AI) into our product portfolios across networking, security, collaboration and observability as well as integrating our products more tightly together. We are simplifying how our technology is delivered, managed and optimized and helping customers maximize the business value of their technology investments.
We conduct our business globally and manage our business by geography. Our business is organized into the following three geographic segments: Americas; Europe, Middle East, and Africa (EMEA); and Asia Pacific, Japan, and China (APJC).
Our products and technologies are grouped into the following categories: Networking, Security, Collaboration and Observability. In addition to our product offerings, we provide a broad range of services over the lifecycle of our products, including technical support services and advanced services. Our customers include businesses of all sizes, public institutions, governments, and service providers, including large webscale providers. These customers often look to us as a strategic partner to help them use information technology (IT) to differentiate themselves and drive positive business outcomes.
We were incorporated in California in 1984 and reincorporated in Delaware in 2021. Our headquarters are in San Jose, California. The mailing address of our headquarters is 170 West Tasman Drive, San Jose, California 95134-1706, and our telephone number at that location is (408) 526-4000. Our website is www.cisco.com. Through a link on the Investor Relations section of our website, we make available the following filings as soon as reasonably practicable after they are electronically filed with or furnished to the Securities and Exchange Commission (SEC) at sec.gov: our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and any amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act. All such filings are available free of charge. The information published on our website, or any other website referenced herein, is not incorporated into this report.
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Strategy and Priorities
In today's digital-first world, businesses and organizations globally are deploying technology to pursue their strategic objectives, from accelerating growth to enhancing operational efficiency and fostering innovation. Our strategy is to securely connect everything to make those desired outcomes possible.
Our customers have three key priorities in this dynamic environment: i) to build modern infrastructure; ii) to protect against the cyber threats of today and tomorrow; and iii) to harness the power of AI and data. Cisco is at the forefront of this evolution, developing innovative solutions that leverage advanced AI to deliver more valuable outcomes for our customers.
Modern Infrastructure
In an increasingly digital and connected world, where each new connection to the Internet puts more demand on the network, our customers are investing in resilient, adaptable infrastructure to quickly respond to market changes and the demands of their own customers. Now more than ever it is crucial for businesses to remain competitive while managing resource constraints. Our customers continue to focus on modernizing their infrastructure with a focus on speed, agility, productivity, innovation and energy efficiency.
Cybersecurity
With the rapid growth in AI, modern applications, hyper-distributed architecture and increasingly sophisticated cyberattacks, customers see cybersecurity as a top priority. Our differentiated security strategy is based on three pillars: moving from point solutions to a platform comprehensively integrated with the infrastructure; infusing security into the fabric of the network; and harnessing the depth and breadth of telemetry data from Cisco and with our acquisition of Splunk Inc. (“Splunk”) to prevent, detect, and respond to sophisticated attacks.
AI and Data
AI represents a generational shift in technology and the advent of AI agents is driving an order of magnitude higher requirement for network connectivity. We provide network infrastructure to power AI training and inference workloads for both webscale providers and enterprises. We help to scale our customers’ network infrastructure with high-density routers and switches, improved network management, and high-performance optics. We are reinventing data center operations for our customers by simplifying the configuration, monitoring, and maintenance of fabrics, compute, networking and storage.
We can help give customers visibility across the network, security solutions, applications and their own business data. With this breadth and scale of data, we can help deliver differentiated insights and context to customers, leading them to more informed proactive decisions and better business results.
These three customer priorities drive our innovation and technology, making them our priorities as well. To help deliver on them, we are bringing together the power of our portfolio, which we refer to as One Cisco, which provides three key outcomes to our customers: i) AI-ready data centers, ii) future-proofed workplaces, and iii) digital resilience.
AI-Ready Data Centers
We are transforming data centers to power AI workloads anywhere. Whether customers need to modernize parts of their existing infrastructure or power new, massive AI workloads, Cisco brings together a wide array of infrastructure (across networking, compute, storage, and silicon) with unified management across traditional and AI workloads, and security from on-premise to cloud to power AI-ready data centers.
Future-Proofed Workplaces
Cisco helps deliver "future-proofed" workplaces, modernizing how people and technology work and serve their customers. This includes environments ranging from factory floors with plant workers and robots to hospitals with healthcare workers, as well as to social workers and salespeople on the move. For secure campus and branch networking, we offer a flexible range of solutions that help ensure secure, reliable connections for users and devices. Our smart building technology turns network devices into sensors for enhanced intelligence and control of physical spaces. To support productivity, we provide collaboration devices and software to enable collaboration no matter where people work.
Digital Resilience
We help to keep the data center, workplace, and entire IT environment securely up and running in the face of any disruption. Our network assurance capabilities, powered by ThousandEyes, are integrated throughout our portfolio. This technology helps ensure seamless connectivity and optimal digital experiences across cloud, Internet, and enterprise networks, for the delivery of applications and services. Our observability solution monitors the entire enterprise to help prevent downtime and improve experiences across networks, infrastructures, and applications. Additionally, Cisco provides robust security measures for threat prevention, detection, investigation, and response for organizations of any size and security maturity.
Cisco enables enterprises and service providers to deliver highly secure connectivity from workplaces to data centers worldwide. Our strength lies in our ability to deliver unified architecture with integrated, end-to-end solutions to help simplify complex challenges. These capabilities are accelerated with Cisco AI, enhancing outcomes for customers globally.
For a discussion of the risks associated with our Strategy and Priorities, see “